Gary North says we have price inflation and monetary near-deflation

[Spartacus]

(I hope Eric doesn't mind me mentioning "Mr. Y2K"[1] here)

(And I'm still trying to hammer-fit Mr. Krowne's thesis into my world-view)

North's article, claiming CPI is up but Adjusted Monetary Base is flat[*] since Feb. 2006. b

http://www.lewrockwell.com/north/north473.html
[*] Under a regime that believes inflation (at least a little bit) MUST BE THE NORM, then IMHO a zero increase in any monetary aggregate is as close to deflation as a central bank dare tread.

Is Bernanke REALLY betting price inflation will continue if monetary aggregates shrink?

[1] AKA Mr. "AIDS is God's punishment and the end of the world" before that, for those with long memories.

[Finster]

Re: Gary North says we have price inflation and monetary near-deflation

(I hope Eric doesn't mind me mentioning "Mr. Y2K"[1] here)

(And I'm still trying to hammer-fit Mr. Krowne's thesis into my world-view)

North's article, claiming CPI is up but Adjusted Monetary Base is flat[*] since Feb. 2006. b

http://www.lewrockwell.com/north/north473.html
[*] Under a regime that believes inflation (at least a little bit) MUST BE THE NORM, then IMHO a zero increase in any monetary aggregate is as close to deflation as a central bank dare tread.

Is Bernanke REALLY betting price inflation will continue if monetary aggregates shrink?

[1] AKA Mr. "AIDS is God's punishment and the end of the world" before that, for those with long memories.

The FDI suggests that inflation has slowed markedly since about mid-April, which would be consistent with the monetary measure message. The CPI lags inflation badly, and is still registering the rip-roaring inflation we had for the prior three or four years.

This is not dispositive, however, since such short-term lulls are not at all rare, so we need some confirmation from other data to help split the difference. Based on the action in the housing market and bond market, it appears we have entered a disinflationary, if not deflationary, spell.